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Ecommerce Brain Trust

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Get access to the world's best brains when it comes to building momentum online for established consumer brands. Join our hosts and their expert guests for conversations about ecommerce strategies, trends, and innovations. Access our brain trust and boost your brand's ecommerce potential.Read more »

Get access to the world's best brains when it comes to building momentum online for established consumer brands. Join our hosts and their expert guests for conversations about ecommerce strategies, trends, and innovations. Access our brain trust and boost your brand's ecommerce potential.Read Less

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What a High Product Return Rate Means on Amazon

< 1 day ago
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27 minutes

DESCRIPTION

Although Amazon wants to simplify things for customers, this doesn't always translate in a similar way for sellers. Today's topic is about a point of frustration for newer sellers and vendors on Amazon, and a cause of concern for brands.

Merchants don't want a high product return rate because of the implied costs, but they have little control over what happens on Amazon. It can be useful for newer merchants on Amazon to get an idea of what kind of return rate they can expect on Amazon because they can consider it into their pricing model. Another reason is that Amazon has a big problem with brands that have a higher return rate than the norm for each category and usually they will investigate such cases.

Bobsled Project Manager Armin Alispahic is back on the show today, and since he’s an Amazon encyclopedia of knowledge, we asked him to break down product returns on Amazon and explain what a high product return rate could mean for your brand.

Join us! Armin has some great tips to help you mitigate return rate issues.

The difference between the average product return rates for some of the categories on Amazon (These average return rates on Amazon come from other sellers and the author's personal experience):

Typically, products with reasonable return rates have less than 10% returns. Products like books and media: 5-7%Home, kitchen, and garden, and sports and outdoors: 8-10%Consumer electronics: 25-35%Clothing and fine jewelry: up to 40%

You will receive a performance alert from Amazon to notify you if your product return rate is too high.

Amazon considers a 10% return rate to be normal.

Amazon will take down the product page of any product with a return dissatisfaction rate higher than 10%.

How to appeal, to get a product listing reinstated on Amazon.

The return and the feedback are related, so whenever you return a product you're dissatisfied with, there will be negative feedback associated with the return.

Although Amazon wants to simplify things for customers, this doesn't always translate in a similar way for sellers. Today's topic is about a point of frustration for newer sellers and vendors on Amazon, and a cause of concern for brands.

Merchants don't want a high product return rate because of the implied costs, but they have little control over what happens on Amazon. It can be useful for newer merchants on Amazon to get an idea of what kind of return rate they can expect on Amazon because they can consider it into their pricing model. Another reason is that Amazon has a big problem with brands that have a higher return rate than the norm for each category and usually they will investigate such cases.

Bobsled Project Manager Armin Alispahic is back on the show today, and since he’s an Amazon encyclopedia of knowledge, we asked him to break down product returns on Amazon and explain what a high product return rate could mean for your brand.

Join us! Armin has some great tips to help you mitigate return rate issues.

The difference between the average product return rates for some of the categories on Amazon (These average return rates on Amazon come from other sellers and the author's personal experience):

Typically, products with reasonable return rates have less than 10% returns. Products like books and media: 5-7%Home, kitchen, and garden, and sports and outdoors: 8-10%Consumer electronics: 25-35%Clothing and fine jewelry: up to 40%

You will receive a performance alert from Amazon to notify you if your product return rate is too high.

Amazon considers a 10% return rate to be normal.

Amazon will take down the product page of any product with a return dissatisfaction rate higher than 10%.

How to appeal, to get a product listing reinstated on Amazon.

The return and the feedback are related, so whenever you return a product you're dissatisfied with, there will be negative feedback associated with the return.